Review Highlights Baker Steel Resources Trust's High Yield Potential

Edison Investment Research Limited has issued a review on Baker Steel Resources Trust (BSRT), highlighting its potential to generate a 20%+ yield. The report emphasizes the capabilities of BSRT’s maturing portfolio of natural resources companies despite recent challenges in junior mining projects. The company's major holding, Futura Resources, has successfully progressed its coking coal mines to production after securing financing. Additionally, Cemos Group plans to enhance its earnings by launching a new plant and production line.

BSRT's shares are currently trading at a 33% discount to their Net Asset Value (NAV), which indicates a significant undervaluation according to Edison. The trust's diversified approach not only covers various commodities but also aims to advance junior mining projects up the development curve. Edison estimates the total dividend and royalty income from BSRT could reach £11–17 million per annum once major projects are fully operational, translating to an annual yield of 19–30%. This projection, however, is dependent on the successful completion of project developments. Both Futura Resources and Cemos Group are expected to conclude their production enhancements within the next 12–24 months.